The Cost of Ignoring Racist Behavior in the Workplace

What is the cost of ignoring racist behavior in the workplace? For a California company, it is $1.25 million dollars.

Air Systems Inc., a subcontractor for the construction of Apple Inc.’s new headquarters in Cupertino, California, paid $1.25 million dollars to eight employees to settle a lawsuit brought by the EEOC that alleged race discrimination in violation of Title VII. Among the allegations: ASI management refused to discipline a White co-worker who repeatedly taunted Black workers with a racist word; the company allowed racist graffiti to remain at the construction site; and it did nothing to address a noose that was hung at the site when it was reported to management.

The Consent Decree entered as part of the settlement also provides substantial non-monetary relief: ASI must retain an Equal Employment Opportunity Consultant to monitor ASI’s compliance with Title VII and the Decree; it must conduct training of its employees; and it must submit regular reports to the EEOC. Basically, ASI will have the EEOC all up in its business until December 31, 2022.

The Black Lives Matter movement has shined a spotlight on the issue of race discrimination. Now, more than ever, companies that ignore complaints of race discrimination, racist comments, and racially charged symbols such as nooses, do so at their peril. Indeed, companies need to be proactive in their training and messaging to employees that racist comments and behavior will not be tolerated in the workplace.